The lack of sustained gains in sales is one reason companies will need to keep a lid on prices, preventing inflation from flaring. The rising cost of commodities such as gasoline may further limit consumers' discretionary spending at a time when the economy is showing signs of stabilizing.

Compared with a year earlier, companies paid 5 percent less for goods, the biggest decrease since 1949 and reflecting the drop in fuel costs late last year that has since partially reversed.

The drop in prices excluding food and fuel was led by decreases in pharmaceuticals, cosmetics and civilian aircraft.

The cost of food dropped 1.6 percent as prices for eggs, fruits and vegetables all fell.